IAS AND IFRS

IAS 16 Property, Plant and Equipment 

Recognition:

1. It is probable that future economic benefits will flow to the entity, and

2. The cost of the asset can be measured reliably

IAS 16 Property, Plant and Equipment Measurement:

1. Initially at cost

2. Subsequent measurement 

   1. Cost model

   2. Revaluation

IAS 36 - Impairment of assets:

Recognition:

Impairment loss is recognized when the carrying amount exceeds its recoverable amount

IAS 36 - Impairment of assets Measurement:

Impairment loss = carrying amount - recoverable amount

IAS 37 Provisions etc. 

Recognition:

1. A present obligation exist

2. It is probable that an outflow of resources will be required 

3. The amount can be estimated reliably

IAS 37 Provisions etc. 

Measurement:

Measured at the best estimate of the expenditure required to settle the obligation

IAS 38 Intangible Assets

Recognition:

1. It is identifiable

2. The entity controls the asset

3. Future economic benefits are probable 

4. Cost can be measured reliably

IAS 38 Intangible Assets

Measurement:

• Initially at cost

• Subsequent 

  • Cost model 

  • Revaluation

IAS 16 Property, Plant and Equipment purpose

ensure consistency in recognizing, valuing, and depreciating these assets across firms and over time

IAS 36 Impairment purpose

prevent overstated asset values and ensure recoverability

IAS 37 Provisions purpose

avoid manipulation of earnings through inappropriate recognition or omission of provisions

IAS 38 Intangible Assets purpose

Ensure consistent and transparent reporting of intangible assets

IFRS 15 purpose

To establish a comprehensive, principle-based framework for recognizing revenue

IFRS 15 recognition:

1. Identify the contract

2. Identify the performance obligations

3. Determine the transaction price

4. Allocate the transaction price

5. Recognize revenue when performance obligation is fulfilled

IFRS 15 measurement

Transaction price